Currency ledger

The currency ledger is a feature that provides the ability to balance transactions by the transaction currency and to track earnings by transaction currency.

Uses of currency ledger

Organizations in the financial service sector are often required to produce balanced balance sheets, including retained earnings, by transaction currency in order to assess currency rate risk exposure.

When you select the currency ledger for your company, these are the activities that take place:

  • A record of each transaction is kept in the transaction currency.

  • Transaction currency journal entries are forced to be in balance.

    • For General Ledger transaction currency journal entries, the General Ledger application forces you to balance any journal entries that are not in balance in the transaction currency before releasing them.

    • For transaction currency journal entries that are interfaced from other applications, the General Ledger automatically posts balancing entries to the Error Suspense account.

  • At the end of each period, the period closing process updates balance sheet accounts in each transaction currency and calculates the undistributed retained earnings.

  • At year end, the year closing program updates balance sheet accounts in each transaction currency, and calculates the distributed retained earnings.

To generate a balance sheet in a transaction currency, you can use Trial Balance (GL291) or you can use Lawson Business Intelligence to set up a Financial Data Mart with a T (Transaction) currency option. See Running a Trial Balance (GL291). See the information about setting up a Financial data mart to view currency data in the Analytic Architect User Guide. setting up a Financial data mart to view currency data, see the Analytic Architect User Guide.